Singapore-based and Nasdaq-listed luxury e-tailer Reebonz Holding Ltd’s stock price continues to nosedive since May 2, 2019, when the company received the final clearance to stay listed on the exchange.
Based on the May 02 closing price of $7.32, the scrip has drifted lower to its last traded level at $2.41 on July 31, 2019, representing a decline of approximately 67.1 per cent.
Reebonz has had a volatile period since the completion of its restructuring and subsequent listing on the Nasdaq. The stock literally went on a roller-coaster ride when the price suddenly shot up to a 52-week peak of $38.90 in a single trading day to the brink of facing a potential delisting from the exchange during the first half of 2019.
However, things managed to return to some form of normalcy, after it managed to comply with Nasdaq listing rules, before the stock started hitting the south zone once again.
DealStreetAsia has reached out to Reebonz for comments on the latest stock performance but has not received a response yet.
However, in the past, the company has repeatedly emphasised that it was not concerned about the day-to-day stock price movements and that as long as their business plans were well-executed, investors would gradually recognise the long-term value of the company.
Roth Capital Partners (Roth Capital), a brokerage house based in the US, and one of the joint bookrunners for Reebonz’s recent stock-and-warrant offering, initiated its research coverage on April 24 with a ‘buy’ rating and a 12-month price target of $11.
It is believed that Roth Capital is the only sell-side broking house that is currently covering the stock. Roth Capital did not respond to our query on Reebonz’ stock performance.
Reebonz director resigns
Reebonz on Wednesday announced the departure of non-executive director Ali Erfan effective July 31, 2019. In the filing, Reebonz noted that the resignation was made in Ali’s personal capacity, and not due to any disagreement on any matter relating to the operations of Reebonz or its auditors.
According to information on Reebonz’ website, Ali has worked in the venture and private equity industry for over 17 years. Previously, he was a senior partner in the venture fund group of 3i Group, a member of the management committee for the global venture capital business, and has led 3i’s venture capital expansion into the Middle East and China.
Ali also holds directorships of The Electrum Group, and Leor Energy, an oil and gas company that was later acquired by EnCana for $2.55 billion in 2007. Ali is a director at Draper Oakwood Royalty Capital Ltd., a subsidiary of Silicon Valley-based Draper Oakwood Capital Ltd owned by a well-known industry figure, Tim Draper.
Based on the latest registration filing with the US SEC on July 03, 2019, Ali held a beneficial interest of 8,840 shares of Reebonz.